Once you agree to an IVA with your creditor, you are legally bound to follow all the terms and conditions that are mentioned in the agreement. You will be appointed an insolvency practitioner by the court and he will supervise you on how to manage your IVA effectively without any problems.
They will also make sure that you pay your debt to the creditor at the right time. If at all you face any problem with that, you should immediately intimate it to your insolvency practitioner as he will take necessary actions upfront. It is your duty to cling to all the conditions mentioned in the agreement paper and make the payments correctly at time.
What to do if your circumstances change?
If something that affects IVA happens in your life, you should tell your IP straight away. This might include situations where you shift your home to an entirely different locality, if you face an income raise or drop in your job, if your financial status drops down etc. Since Individual Voluntary Arrangement is absolutely flexible, you will be able to vary the IVA depending upon your financial status.
How do you make your payment?
Generally in an IVA, you need not meet your creditor in person to settle your debts, you will have to give your payment to your insolvency practitioner and he will pass it on to your creditor. A particular amount of it will be taken by the IP as his fees. You will make payments once in every month.
Even if you have to sell your assets like your land, home or cars, it is the IP’s responsibility to sell them and give the money to the creditor. Once in a year, your IP will review the IVA. They will check on your bank statements and payslips.